Shift Announces First Quarter Results and Review of Strategic Alternatives.
ENPNewswire-May 15, 2023--Shift Announces First Quarter Results and Review of Strategic Alternatives
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Release date- 12052023 - SAN FRANCISCO - Shift Technologies, Inc. (Nasdaq: SFT), a consumer-centric omnichannel retailer for buying and selling used cars, today reported first quarter financial results for the period ended March 31, 2023.
Management's commentary on first quarter financial results can be found by accessing the Company's prepared remarks on investors.shift.com, or by listening to today's conference call. A live audio webcast will also be available on Shift's Investor Relations website.
First Quarter 2023 Operating Results
Total revenue for the quarter was $57.7 million.
Total retail units sold were 2,396.
Gross profit per unit was $1,477; Adjusted gross profit per unit1 ('Adjusted GPU') was $1,777.
Net loss and comprehensive loss was $48.1 million or 83% of revenue, compared to net income of $13.0 million or 20% of revenue in Q4'22 (net income for the fourth quarter included a gain on bargain purchase of $76.7 million related to the acquisition of CarLotz, Inc.)
Adjusted EBITDA1 loss was $24.0 million or 41.7% of revenue, compared to $25.5 million or 38.9% of revenue in Q4'22.
Cash and cash equivalents totaled $68 million at March 31, 2023
'While making significant progress in managing our cost structure, our team has shown improvement in the execution of our omni-channel strategy as evidenced by the sequential improvement of total adjusted GPU to $1,777 in the first quarter, a 71% increase compared to fourth quarter 2022. In addition to our omni-channel strategy, our tech team is highly focused on preparing to launch the dealer marketplace in the third quarter 2023. I want to thank everyone for all of their hard work,' said CEO Jeff Clementz. 'Simultaneously, in order to maximize shareholder value, the Board of Directors, alongside management and advisors, is evaluating strategic alternatives for the business.'
Review of Strategic Alternatives
Shift Technologies' Board of Directors, together with management and in consultation with our financial and legal counsels, is conducting a process to explore and evaluate strategic alternatives, including exploring a potential sale of certain operating businesses, third party investment or partnership opportunities and/or funding alternatives for our marketplace business, to further enhance value for all stakeholders. The Board expects to proceed in a timely manner, but has not set a definitive timetable for completion of this process. There can be no assurance that this review process will result in a transaction or other strategic alternative of any kind. The Company does not intend to disclose developments or provide updates on the progress or status of this process or discuss with investors the Company's results of operations until it deems further disclosure is appropriate or required.
1Adjusted Gross Profit, Adjusted Gross Profit per Unit (GPU), Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP financial measures. Please see the discussion in the section 'Explanation of Non-GAAP Measures' and the reconciliations included at the end of this press release.
Shift First Quarter 2023 Results Summary: See full release at:
https://investors.shift.com/news-releases/news-release-details/shift-announces-first-quarter-results-and-review-strategic
Conference Call Information
Shift senior management will host a conference call today to discuss the Company's Q1'23 financial results. This call is scheduled to begin at 2:00 pm PT / 5:00 pm ET and can be accessed by dialing (833) 634-1255 or (412) 317-6015. To listen to a live audio webcast, please visit Shift's Investor Relations website at investors.shift.com. A telephonic replay of the conference call will be available until Thursday, May 18, 2023, and can be accessed by dialing (877) 344-7529 or (412) 317-0088 and entering the passcode 5267882.
About Shift
Shift is a consumer-centric omnichannel retailer transforming the used car industry by leveraging its end-to-end ecommerce platform and retail locations to provide a technology-driven, hassle-free customer experience. Shift's mission is to make car purchase and ownership simple - to make buying or selling a used car fun, fair, and accessible to everyone. Shift provides comprehensive, digital solutions throughout the car ownership lifecycle...
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